Which type of risk is commonly underwritten by the Casualty Department?

Which type of risk is commonly underwritten by the Casualty Department?

• A. Homeowners insurance
• B. Marine risks
• C. Automobile liability
• D. Earthquake coverage

Answer: (C)

Casualty work centers on liability exposures—situations where the insured could be legally responsible for causing harm to others or their property. Auto liability is a classic casualty line because it covers the insured’s legal responsibility for injuries or property damage resulting from automobile accidents. It focuses on third-party risk, not damage to the insured’s own property. The other options are primarily property-related: homeowners insurance protects the dwelling and its contents, earthquake coverage insures structural damage from quakes, and marine risks cover ships and cargo. So auto liability best fits the Casualty Department.

Casualty work centers on liability exposures—situations where the insured could be legally responsible for causing harm to others or their property. Auto liability is a classic casualty line because it covers the insured’s legal responsibility for injuries or property damage resulting from automobile accidents. It focuses on third-party risk, not damage to the insured’s own property. The other options are primarily property-related: homeowners insurance protects the dwelling and its contents, earthquake coverage insures structural damage from quakes, and marine risks cover ships and cargo. So auto liability best fits the Casualty Department.